# GIFT Nifty 🇮🇳: (+65, 24618)
# Nifty plunged 1.78% lower in last week’s trade as sentiments remained depressed.
Nifty now trades way below its 21 DMA (24709), 50 DMA (24998) and 100 DMA (24687) and most importantly, well below the psychological 25000 mark.
# Catching headlines this Monday morning are :
1) PM Modi meets President Xi Jinping. (This was PM Modi’s first visit to China in seven years, coming amid rising tensions with the U.S. over tariffs and India’s balancing of relations with Moscow and Washington.)
2) Indian Rupee tumbles to new low at 88.31 per dollar following the 50 per cent tariff imposed by the United States on Indian goods.
3) Mukesh Ambani-led Reliance Industries is planning to list India’s largest mobile network and digital arm Jio Platforms public by mid-20263. (This will be one of India’s most anticipated listings).
4) India’s economy grows at faster-than-expected 7.8% in the June quarter. (The string GDP growth rate was boosted by the manufacturing, construction and service sectors. Annual manufacturing and services growth were at 7.7% and 9.3%, respectively, with the construction sector expanding by 7.6%. Also helping were lower than expected inflation, better than expected corporate earnings.)
5) There is a bright chance that RBI may cut rates once again in the second half of the year if India’s growth slows down if there is any adverse impact of US tariff’s. (Please note, on June 6th, RBI had cut policy rate to 5.5%, lowering it by 50 basis point. While the central bank maintained the status quo in its August policy).
6) The US July PCE Inflation is seen creeping up clouding the Fed’s rate outlook.
7) Persistent FIIs selling: Last week, the FIIs have net sold to the tune of Rs. 21152 Cr.
# Long Story Short: Initiating aggressive long positions at Dalal Street will be just like building a skyscraper on top of quicksand.
Caution shall continue to be the buzzword for perma-bulls camp.
# Bulls hope now turn towards the 2-big catalysts of this week:
1) India’s Goods and Services Tax (GST) Council is scheduled to meet on September 3 and 4 to discuss reducing tax rates on various goods and services.
2) Wall Street bulls will be hoping for a September rate cut.
But, we suspect, the Federal Reserve will look at the incoming data points before slashing the rate on September 17th.
# The incoming data which we would like to spy with one big eye: The US Jobs report to be wired on Friday, September 5th.
# STOCKS IN SPOTLIGHT:
1) Shares of BSE (-3.77%), Angel One (-2.20%) and Nuvama (-2.52%) and other capital market-related firms tanked in Friday’s trade as the negative theme revolves around Sebi hinting at longer F&O tenors.
2) Infosys slipped 2.07% in Friday’s trade even after the company announced a strategic collaboration with Mastercard to offer financial institutions enhanced access to Mastercard Move, its portfolio of money movement capabilities.
3) Indus Towers gained 0.8% in Friday’s trade after the company announced the appointment of Vineet Jain as the chief supply chain management officer (CSCMO) of the company, effective 3 September 2025.
4) Vodafone Idea shares ended on a jittery note in Friday’s trade, down 1.22% towards Rs. 6.49 after Centre recently ruled out further AGR relief.
5) CG Power and Industrial Solutions (+4.56%) jumped in Friday’s trade after the firm’s subsidiary, CG Semi has launched its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, to offer solutions for packaging technologies.
# Now, here is the preferred trade on Nifty and Bank Nifty:
Nifty (24427): Sell between 24550-24600 zone. Stop at 24991. Targets 24336/24250. Aggressive targets at 24000-24100 zone.
Bank Nifty (53656): Sell between 53900-54100 zone. Stop at 54951. Targets 53411/53000. Aggressive targets at 52650-52896 zone.
# Our chart of the day is bullish on WAAREE ENERGIES, UPL and NYKAA on any early excessive intraday weakness with an interweek/Intermonth perspective.
# The 1 Stock to Sell Right Now: Sell VODAFONE IDEA (CMP 6.49): The technical landscape of Vodafone Idea looks very ugly as is signaling a massive breakdown on the long term charts. The biggest negative catalyst for the company is that the Centre recently ruled out further AGR relief. Simply sell at CMP, and on strength between 7.15-7.30 zone, targeting 5.60/4.50 mark and then at its all-time-low at 2.40 mark. Stop above 8.75. Holding Period: 1-3 Months.
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